ROAS

ROAS stands for Return On Ad Spend. It's a key metric in online marketing that measures the advertising revenue generated for every dollar spent on a campaign. Think of it like a scorecard that tracks how efficiently your ads are converting into sales. ROAS is calculated by dividing the revenue generated from advertising by the cost of the advertising campaign. For example, if a business spends $100 on advertising and generates $500 in revenue from that campaign, the ROAS would be 5 ($500 / $100), indicating that for every dollar spent on advertising, the business earned $5 in revenue. While a 3:1 to 4:1 ROAS is a good target for e-commerce, it can vary based on your industry, marketing channel, and business goals.